Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

2017/182018/192019/20
Savings rate: 10%, 0% from 2015/16Up to £5,000Up to £5,000Up to £5,000
Dividend Allowance: 0%Up to £5,000Up to £2,000Up to £2,000
Basic rate: 20%Up to £33,500Up to £34,500Up to £37,500
Higher rate: 40%£33,501 – £150,000£34,501 – £150,000£37,501 – £150,000
Additional rate: 45%Over £150,000Over £150,000Over £150,000

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,000 in 2019/20. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

For 2017/18 the basic rate band on non-savings income for Scottish Taxpayers is set at £43,000. For all other income types it remains in line with the main UK band of £45,000.

SCOTTISH INCOME TAX RATES AND BANDS FOR NON-SAVINGS INCOME

2018/192019/20
Starter rate: 19%Up to £2,000Up to £2,050
Basic rate: 20%£2,001 to £12,150£2,501 to £12,445
Intermediate rate: 21%£12,151 to £31,580£12,446 to £30,930
Higher rate: 41%£31,581 – £150,000£30,931 to £150,000
Additional rate: 46%Over £150,000Over £150,000